Level 1 - Absolute Beginner
Stocks went up on Friday, October 9. It was a good day for Wall Street.
The Dow rose by 423 points. It closed at 51,654.95. The S&P 500 and the Nasdaq also went up.
All three indexes ended the week higher. People are waiting for companies to share their results.
Oil prices went down a little. Brent oil is still over 100 dollars a barrel.
- stock
- A small part of a company that you can buy.
- Wall Street
- The home of the American stock market.
- index
- A number that shows how many stocks move.
- rise
- To go up.
- close
- To end the day at a price.
- week
- Seven days.
- result
- The numbers a company shares about money.
- oil
- A liquid used to make fuel.
Level 2 - Elementary
U.S. stocks rose on Friday, October 9, and all three major indexes finished the week higher. The Dow Jones Industrial Average gained 423.31 points, or 0.83 percent, to close at 51,654.95.
The S&P 500 rose 0.59 percent to 7,811.54, just below its record close of 7,818.93 on Tuesday. The Nasdaq Composite added 0.64 percent to 27,366.17.
Oil helped the mood. Brent crude fell more than 1 percent but stayed above 100 dollars a barrel after President Trump said the United States would not attack Iran before the midterm elections.
The yield on the 10-year Treasury note was about 5.25 percent, close to a 24-year high. Investors now look to the start of earnings season, when companies report their profits.
- gain
- To go up in value.
- record
- The best or highest ever.
- composite
- Made of many parts.
- crude
- Oil that has not been refined.
- yield
- The money you earn from a bond, shown as a percent.
- Treasury note
- A loan to the U.S. government.
- investor
- A person who puts money into stocks or bonds.
- earnings season
- The weeks when many companies report profits.
Level 3 - Intermediate
Wall Street closed a volatile week with a broad rally on Friday, October 9. The Dow Jones Industrial Average climbed 423.31 points, or 0.83 percent, to 51,654.95, while the S&P 500 gained 0.59 percent to 7,811.54 and the Nasdaq Composite added 0.64 percent to 27,366.17. All three averages recorded a winning week.
The S&P 500 ended slightly under Tuesday's record close of 7,818.93, a reminder that the market remains close to its highs even as bond yields test the patience of equity investors. The benchmark 10-year Treasury yield hovered around 5.25 percent, near the 24-year peak reached earlier in the week.
Energy markets offered some relief. Brent crude slid more than 1 percent but held above 100 dollars after Mr. Trump said Washington would not strike Iran before the November midterms, while keeping the blockade in force.
Not every company shared the optimism. Delta Air Lines shares fell after it missed profit estimates and cut its annual outlook, citing about 500 million dollars in extra fuel costs compared with July guidance. With earnings season about to begin, traders will test whether companies can absorb higher energy and borrowing costs.
- volatile
- Changing quickly and unpredictably.
- rally
- A rise in prices after a fall or a flat period.
- benchmark
- A standard used to compare other things.
- equity
- Ownership in a company, such as stocks.
- peak
- The highest point.
- guidance
- A company's own forecast for its results.
- absorb
- To take in without serious damage.
- outlook
- A forecast of what will happen.
Level 4 - Advanced
Equities capped a turbulent week with a broad advance on Friday, October 9, as investors positioned for the start of third-quarter earnings. The Dow Jones Industrial Average added 423.31 points, or 0.83 percent, to 51,654.95; the S&P 500 rose 0.59 percent to 7,811.54, a whisker below Tuesday's record close of 7,818.93; and the Nasdaq Composite gained 0.64 percent to 27,366.17.
The rally unfolded against an unusually fraught backdrop. The benchmark 10-year Treasury yield, near 5.25 percent, lingered close to the 24-year high it touched earlier in the week, and any further climb threatens to compress the valuations that have underpinned technology shares.
Crude oil provided a measure of respite. Brent slipped more than 1 percent yet remained above 100 dollars a barrel after Mr. Trump signalled that he would not authorize strikes on Iran before the November 3 midterms, even as the Hormuz blockade stays intact. Traders appear to be pricing a narrower window of escalation rather than a durable settlement.
Corporate signals were mixed. Delta Air Lines slid after missing profit estimates and slashing its full-year guidance, attributing roughly 500 million dollars of additional expense to fuel relative to its July forecast. As banks and industrials begin to report, the central question is whether pricing power can offset surging energy and financing costs.
- turbulent
- Marked by sudden, violent change.
- fraught
- Filled with tension or anxiety.
- valuation
- The estimated worth of a company or asset.
- underpin
- To support from below.
- respite
- A short rest or relief.
- escalation
- A rise in intensity or scale.
- durable
- Able to last.
- pricing power
- A firm's ability to raise prices without losing customers.